#ZeeEntertainment in focus
Get all your stock-related queries answered by our technical and fundamental guests with Smriti Chaudhary on 'Ask Profit'. #NDTVProfitLive
Get all your stock-related queries answered by our technical and fundamental guests with Smriti Chaudhary on 'Ask Profit'. #NDTVProfitLive
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00:50 Good morning, you're watching Ask Prophet.
01:07 I'm Smriti Chaudhary, and for the next 30 minutes,
01:10 I'll take all your stock related questions.
01:12 So to write to us, you can either message us on the WhatsApp number that's on your
01:16 screen, or you can write to us on the YouTube live chat,
01:19 or through any of our social media channels.
01:21 So get to writing.
01:22 Now let me introduce you to the guests for today.
01:25 We have with us Mr. Vinit Bulinchkar of Ventura Securities and
01:30 Nirav Chheda of Nirmal Bang Securities.
01:32 Welcome to both of you, and thanks for joining in.
01:35 Now, before we jump into the focus and the questions,
01:39 let me start off by seeing where the markets are currently at.
01:44 If you look at the benchmark indices, they're extremely flat at this point.
01:49 It's 0.02%, that's where Nifty 50 is at.
01:52 However, it's been kind of in the red, a little bit in the red since morning.
01:57 So a bit of a downturn we're seeing, but not much to complain there.
02:03 Let's also look at the constituents of the Nifty 50.
02:07 Power Grid is gaining about 3.8% in trade.
02:10 HDFC Bank is up today about 1.8%.
02:13 Grasim is up about 1.5%.
02:16 From the contribution, there's just a five point contribution, and
02:19 largely it's by HDFC Bank that we're seeing.
02:22 Then there's Infi, that's on the down tick.
02:24 Infi, TCS, and Coal India.
02:27 Now, Coal India is also one of the biggest loser on the Nifty 50 today, and
02:31 that's because of the commentary from the management and the results yesterday.
02:37 That's pretty much on the benchmark indices.
02:38 Let's look at the broader markets as well.
02:40 Nifty Mid Cap and Small Cap are both currently trading in red.
02:45 Nifty Mid Cap 1.5% is down about 0.2%, and Nifty Small Cap kind of flattish there, but
02:54 treading the territory in red.
02:56 So that's the broader markets.
02:59 If we can also look at the breadth of the market at this point and see what is the ratio
03:05 of advance and declines, there you have it.
03:07 You can clearly see there's a bit of a choppy market right now.
03:13 It seems indecisive at this point.
03:16 So literally the advances and declines are pretty much merging, and that's the state
03:22 of the markets right now.
03:26 But the focus for today is Zee Entertainment.
03:29 Now we have, NDTV Profit has an exclusive on Zee Entertainment today, and according
03:36 to sources that spoke to NDTV Profit, Zee Sony lawyers are engaging in talks.
03:41 Now this comes after the collapse of the Zee Sony merger.
03:46 So this, and the markets are taking positive cues from it.
03:49 The stock is up in trade today, and if I'm not wrong, it was touching upper circuit at
03:55 5%.
03:57 That's pretty much a positive cue on Zee.
03:59 But I'll come to you, Vineet, on Zee Entertainment.
04:02 How are you viewing this development?
04:04 Do you see some sort of, I understand there's uncertainty in the stock that remains, but
04:11 from a longer term perspective, would you suggest people to stick with Zee Entertainment
04:17 if they already have the shares?
04:20 See, the primary perspective for Zee and Sony to merge was truly to take on the competition
04:28 which is coming from Big Boy Reliance, doing a deal with Hotstar and Disney.
04:36 Now with that kind of ominous competition, Zee, if it thought that it could survive on
04:44 its own, or thrive on its own, they would have not gone in for a merger.
04:49 But the fact that the merger has been called off and the thing, so it really does not portend
04:55 well for the Zee stock.
04:56 Of course, there's a little bit of upside coming in from the fact that the stock was
05:00 beaten down very aggressively, and they will possibly be looking for other suitors for
05:07 their business.
05:08 So until such time, I think this stock does not have too much of mojo in it.
05:13 And we expect the stock to drift upwards because the beating and the arbitrary factor is still
05:21 downside.
05:22 Right, understood.
05:24 Okay, let's quickly jump into the questions now.
05:28 The first one is from Ranjeet and they're talking about Nalco.
05:32 This one's for you Nirav.
05:34 They want to know what is the good price to buy Nalco?
05:37 Should they buy the stock at this juncture?
05:40 Should you wait for some more of a dip in the stock to get into it?
05:48 So see, this stock has witnessed a big breakout.
05:53 This is about a 15 year breakout.
05:57 This is the first time the stock has gone above the 140 levels in its history after
06:01 another 15 years.
06:03 So definitely, it has a lot of legs to move up and it should move up very quickly.
06:10 So my only request here is don't look to trade short term in this stock.
06:15 The volume profile is very good as well.
06:18 There is a likelihood that this stock is going to go up towards that 220 to 230 odd levels
06:23 in a very short period of time.
06:26 So look to buy this stock even at current levels and on dips up to 150 odd, 145 is a
06:32 very good support area that should be a stop loss.
06:35 And yeah, you know, at 220 to 230 as well, you know, don't look to sell.
06:40 You can probably again see how the chart looks.
06:43 You can ask a question again and we'll be there to help again.
06:48 Got it.
06:49 Let's take a question from Rajesh Maheshwari.
06:52 He's written to us on YouTube and he's talking about Dixon Technologies.
06:57 He's already bought in the stock at 5000 levels.
07:00 He wants to know what's the outlook for this stock from a short to medium term perspective.
07:04 So Nirav, tell us what are the charts showing on Dixon Technologies?
07:11 So this stock has witnessed a two year consolidation breakout above the 6300 odd levels.
07:19 And post that, you know, there was a small little flag kind of a formation breakout which
07:25 has come in.
07:26 And definitely believe this stock is going higher up to the 7700 odd levels.
07:32 You can continue to hold the stock on the target of around 7200.
07:37 Now, the only thing I want to do is, you know, keep a stop loss around the 6450 odd levels
07:43 which is a good support area that should be a good stop loss as well.
07:47 Right.
07:48 Fair point.
07:49 Next up, we have a question coming in on Cool India.
07:51 Now, this one's from Pranav.
07:53 We're seeing a downtick in the stock after yesterday's commentary from the management
07:58 and we saw the results also.
07:59 The e-auction premium has come down.
08:03 We need from a longer term perspective, do you still remain constructive on Cool India?
08:08 Absolutely.
08:09 You know, so with the number of coal fired plants being set up and, you know, the demand
08:17 for coal going up, there is obviously going to be a shortage in, you know, peak power.
08:23 So obviously that can only be met through Coal India's coal and we expect volumes to
08:30 remain robust and there is steady pricing.
08:35 And we also expect a little bit of operating leverage to come in because, you know, coal
08:39 is also setting up its own power plants.
08:42 And apart from this, the washing of coal also helps in improving the, you know, the profits
08:49 margins.
08:50 So I think coal is a good buyer concurrence.
08:54 And from a technical standpoint, Neerav, how does Coal India look?
08:59 Technically, it looks very good.
09:01 You know, this stock has consolidated from 2011 onwards and, you know, this is the first
09:08 time a 100% retracement has taken shape.
09:12 And in fact, this stock also went above those important resistances of, you know, 450 or
09:18 so years ago.
09:19 I definitely believe this stock has the legs to move up.
09:22 No doubt, you know, it is negative today.
09:25 Also some dividend has come in today.
09:27 So that is why it is down.
09:30 But I definitely believe one should continue to hold the stock, even buy it at current
09:36 levels.
09:37 It should move up quite significantly like it has done in the last six months or I am
09:42 looking at targets, medium term targets of around 750, 800.
09:45 And from a short term perspective, definitely, you know, 550, 600 is achievable.
09:52 So don't worry, you know, probably another three, four days of consolidation or down
09:57 tick, this stock should again regain strength and move up.
10:00 So, you know, continue to invest in this stock.
10:05 Next up, we have a question from Sulochana from Vishakhapatnam.
10:08 Now they're talking about Adani Wilma shares.
10:10 They've already bought in the stock in 2022 at 700 rupees.
10:15 Yes, 700 rupees.
10:17 We need from a longer term perspective.
10:20 What's your view on Adani Wilma?
10:25 I think, you know, the franchise is a very strong franchise and to build such a franchise,
10:30 it takes about 20 years.
10:32 And the fact that the company operates primarily into the edible oil space, which is a large
10:38 chunk of its business, you know, there is bound to be some volatility.
10:43 But with the government taking a lot of steps to ensure that, you know, domestic volumes
10:47 pick up and there is uniform, you know, reduce the volatility to a large extent.
10:53 I think Adani Wilma with its diversification into FMCG and other products is well placed
10:59 to buy from here.
11:02 So I think barring for the fact that the Adani is going to sell out, this stock is definitely
11:08 at an interesting point and it can continue to move up.
11:14 Right.
11:15 Just a standard disclosure here, NDTV profit is part of Adani Group.
11:20 And yeah, that's that's where you're watching the show.
11:24 Let's get into another question.
11:26 This one's on Rotopump.
11:28 Now Nirav, I'll come to you on this one.
11:33 This question is from Devang and they have bought in the stock at 245 levels.
11:38 Would you suggest holding on to it?
11:40 And what are the key levels that you should watch out for?
11:42 This stock, you know, I'm seeing a very good pattern develop here.
11:49 A higher top, higher bottom formation is in place and the volumes are also rising as the
11:55 stock is rising.
11:56 So that's a very good sign.
11:57 I believe one can stay invested.
11:59 You can, in fact, add more positions at current levels as well.
12:03 You don't see any distribution that is happening.
12:06 So yeah, it should again regain strength and move up above that 450 resistance zone and
12:13 up to that 550, 600 levels.
12:15 Continue to stay on.
12:18 The only real thing here is, you know, for you, keep a stop loss of about 380.
12:26 Once 380 is broken below, there can be some negative bias for the stock and, you know,
12:32 about 320 or 10 come.
12:34 But I don't see it coming, you know, probably breaking that 380 or levels.
12:38 But always have a stop loss with you while trading or investing.
12:43 Got it.
12:44 Next up, we have a question from Krishna Kishore from Hyderabad and they're talking about Shipping
12:48 Corporation.
12:49 Now, Vinit, recently we did a story on Shipping Corporation that talked about, we essentially
12:55 valued the non-core assets of the company.
12:58 And it turns out that the market value of these non-core assets, which will be demerged
13:03 into SCILAL, is double the book value.
13:08 Now, considering that, we have Krishna who has bought the shares at 141 levels and currently
13:15 the stock is trading around 251.
13:18 From a longer term perspective, what would you suggest Krishna to do with the Shipping
13:24 Corporation of India?
13:25 And I also want you to talk about the concerns around Red Sea as well that is having an impact
13:32 on trade costs.
13:33 Yeah, so first thing that I think is he should continue to hold on to this stock because
13:40 there is going to be substantial upside coming here.
13:43 What are the reasons for driving this upside is the fact that India's Ex-Im business is
13:49 going to go up very aggressively because the country is trying to push merchandise from
13:54 Made in India exports and Atman Nirbhar Bharat.
13:57 So that is number one.
13:59 Number two is that if you see the crisis, which is there in the Red Sea, India has,
14:07 Indian army has been very productive about its vessels and they have taken some preemptive
14:13 action.
14:14 So that goes to show you that our vessels are safe and secure.
14:17 Third thing is that it is obviously a conflagration, which is an explosive situation and prices
14:24 are expected to stay firm.
14:28 So this is why this will help SCI build on the margins.
14:34 It is going to impact the insurance cost.
14:36 So you know, there will be a net net minor gain for the company.
14:40 But apart from that, I believe that longer term, the story looks very, very strong and
14:45 the government is hell bent on improving the efficiency and valuation of, you know, the
14:51 PSUs.
14:52 So we believe that you should continue to hold for this purpose.
14:56 Understood.
14:57 So that is a hold on shipping corporation of India.
15:01 Next up we have a question from PGK Raju and he says he is retired from the Central Bank
15:08 and he is also holding the shares of Central Bank.
15:12 He bought it at 60 levels.
15:14 It's currently in the red today and trading around 66 levels.
15:18 What kind of levels should you watch out for in Central Bank?
15:24 Should you continue holding on to it because he's in a, there's a marginal profit there.
15:32 So you know, if he's holding on to this stock from a long time, this is the right time for
15:39 this stock to perform and you know, give him good profits.
15:44 This stock was in the snooze mode for the longest time, probably 15 years.
15:50 This stock has come down from 120 odd onwards, but the volume profile is very good.
15:56 Now the stock is also doing a higher top, higher bottom formation.
15:59 I believe this stock can go up towards those 85, 90 odd levels in the short term.
16:06 So if it's looking from a short term perspective, that is your target.
16:09 But from a medium term perspective, 100% retracement of around 120, 125 will come in, in the next
16:15 six odd months.
16:17 So definitely hold on to this stock.
16:19 It will give you good profits.
16:20 The stop loss here to be followed is around 56.
16:23 Got it.
16:24 Understood.
16:25 We'll slip into a short break now, but after the break, we'll take a lot of more of your
16:31 questions.
16:32 Stay tuned.
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19:03 Welcome back.
19:04 You're watching Ask Profit.
19:05 Without wasting any time, let's quickly jump into the questions.
19:08 The first one's coming from Shambhunath from Kolkata, and they're talking about Deepak
19:13 Nitride.
19:14 They've bought in the shares at 343 levels.
19:17 Now, Vineet, Deepak Nitride, we had the management also on today talking about the company and
19:27 the fundamentals.
19:28 If you can tell us what's the long-term view on this one, and should they continue holding
19:31 on to the shares?
19:33 So, you know, we believe that while, you know, right now the chemical market outlook is not
19:40 that hunky-dory, our reasoning is that Deepak Nitride has been indulging in business, which
19:46 is, you know, an import substitute.
19:48 So, the market for them is like, you know, a buyer's market with their service, and that
19:57 provides them with a lot of volume security and the business security.
20:02 Ultimately, what is going to drive the stock upward is a recovery in chemical prices, and
20:08 we think that this should happen over the next few months, given the fact that, you
20:14 know, we are in the fag end of exhaustion of the chemical price decline.
20:20 So, we are quite constructive on the entire chemical industry, and we think there is more
20:25 gain than pain from current levels.
20:27 So, we can continue to hold the stock.
20:30 Okay, fair point.
20:31 Now, next question is from Nishant Patel on YouTube, and they're talking about Adani Energy,
20:37 and they've bought the stock at 1079 levels.
20:42 And I'm not sure if they've mentioned…
20:46 Yeah, this is from a mid- to long-term view.
20:49 So, Vineet, this one's for you as well, Adani Energy.
20:53 Should you continue holding on to it from the longer term?
20:56 You've talked about the power sector on a whole, but specifically this one, would you
21:01 remain constructive?
21:02 Yeah, yeah, absolutely.
21:04 See, you know, with the increasing number of renewable projects that come in, you need
21:09 to put up new transmission lines and the entire infrastructure set up to vacate the power.
21:18 And, you know, that is where Adani Energy comes into play.
21:23 In this, what happens is that, you know, they get 30-year cash flows decided right at the
21:29 beginning of the period when the contract is allotted.
21:32 So, there are some very strong cash flows accruing over 35 years.
21:36 And, you know, it's very difficult to replicate this kind of business after 35 years because
21:42 of the cost inflation for the infrastructure project.
21:47 So, what happens is they tend to get renewed with the existing players.
21:50 So, you know, these are like perpetual income for these stocks.
21:54 So, I believe that they have a very strong growth factor.
21:58 They have been gaining almost 33-35% market share of the private sector projects which
22:04 are rolled out, not including power grid in this perspective.
22:09 And they have done really well and we think that this stock is headed for another 50-60%
22:14 upside from current levels over the next 2-3 years.
22:17 Okay, 50-60% upside in Adani Energy.
22:21 Now, next up, we are talking about Tyne Technoplast.
22:25 This one is from, I am not sure if they mentioned the name, Hari.
22:31 And they want to buy the stock, Nirav.
22:33 Now, Tyne Technoplast, if you pull up the one-year chart of this, it's a multi-bagger.
22:38 It's given over 160% returns.
22:41 Do you think there's more upside into the stock?
22:44 Oh, definitely.
22:47 See, there is a period before 2020 and then there is a period after 2020.
22:53 Before 2020, there was no volume whatsoever.
22:57 Just look at the volumes this stock has managed after 2020.
23:01 It's a totally different stock post that and no doubt it has given multi-bagger returns
23:06 because of the volume.
23:07 The profile is superb.
23:09 There's a V-shaped recovery for this stock and this is on the verge of a multi-year breakout.
23:16 The multi-year breakout level is around that 230 odd levels.
23:20 Once it gives a closing about 230 levels, you will see this stock fire, you know, all
23:26 guns blazing.
23:27 This stock can go up towards that 280-300 odd level.
23:31 So definitely go ahead and look to buy.
23:33 But above that 230 levels, you know, once that breakout comes in, only then buy.
23:38 You can keep a stop loss of around 210 for your longs post breakout.
23:44 Got it.
23:45 Vineet, let's talk about the IT sector.
23:47 This one's from John.
23:49 They've bought in TCS at 4,100 and Infosys at 1,700.
23:54 And we've seen a bit of a chop and churn in the IT sector.
23:57 We saw US inflation kind of more than what was expected as well.
24:03 What would you say to somebody who's holding on to a TCS or an Infi?
24:09 From a longer term perspective, of course.
24:12 Obviously.
24:13 So for me, there is still a lot of...
24:16 So if you see technically there are breakouts, the stocks are at new highs and price action
24:22 has been quite positive and investors have benefited.
24:26 But, you know, going ahead, I am not very sure on what is going to be the outlook for
24:32 this sector, primarily due to a couple of things.
24:36 One is the orientation towards AI, number one.
24:40 Number two is, you know, we believe that we are at the precipice of a possible fall in
24:46 the dollar.
24:47 When that will happen is anybody's guess.
24:50 But that is an overhanging sword and the risk of that to the entire business being based
24:57 on arbitrage of labor, you know, doesn't portend well for the outlook of the service providers.
25:03 So as a policy, we are constructively negative on these stocks.
25:08 So if you're a long-term holder, you must trade with very tight stock losses.
25:13 And if you're in profits, don't let these trades get into a loss.
25:17 If you're getting into a loss, you should be exiting them.
25:20 Nirav, do you have the same view on TCS and Infosys?
25:24 And if you do, do give us the levels.
25:27 So, frankly speaking, these stocks have had their share of consolidation.
25:36 And now TCS is one stock which has led the rally for the sector as a whole and a rounding
25:45 shape breakout has come in in this stock.
25:49 That breakout had come in around that 4000 levels, which is being retested again.
25:54 So once that retested is done in the next couple of weeks, you will see the stock moving
25:59 up very swiftly.
26:01 And, you know, I feel whatever wrong had to happen has happened.
26:06 Technically, you know, this stock can move up towards that 4800 to 5000 levels very swiftly.
26:14 And, you know, the others as well, you look at the others like Infosys, Tech, Mahindra,
26:19 HCL, Tech, most of their consolidation period is over.
26:22 Volumes have risen from, you know, the lows and very importantly, a lot of shorts were
26:28 in the system, which seem to have come out now.
26:31 So covering has happened.
26:33 So even for Infosys, for that matter, a small breakout has come in and it has been detested
26:39 as well.
26:40 So 1650 is a very strong support area now.
26:43 This stock is headed towards 1850, 1900 levels very soon.
26:47 So definitely a buy on dips kind of a stock where you've got dips today should be bought
26:54 into with, you know, or Infosys 1640 will be the stop loss.
26:59 And for TCS, the stop loss would be around the 3980 or so.
27:05 Both these stocks are a buy and I believe the sector as a whole should see good upside.
27:11 All right.
27:12 Understood.
27:13 Thank you so much, Nirav and Vineet.
27:15 We're completely out of time.
27:17 And thanks for joining in and for answering so many questions for us.
27:20 And viewers, we'll be back tomorrow, same time at 1130 a.m.
27:24 If you were not able to take your questions today, we'll definitely try and take them
27:28 up tomorrow.
27:29 But stay tuned to NETV Profit.
27:31 Lots more coming up on the other side.
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